Details
The assignment must be completed as an individual assignment. There is a specific writing style and required to write an executive report. Word limit is 1500 words. Please do not repeat the question in your answer, and simply provide the answer.
Students are not allowed to either directly or indirectly contact the companies for which annual reports are used in this assignment.
Students are also not allowed to contact analysts directly or indirectly to gather information and/or advice about this assignment.
Students must base their analyses purely on the information that is provided on the company's website and/or on the Australian Stock Exchange.
In all your calculations, show the absolute figures from the financial statements. Also support any arguments with absolute figures from the financial statements.
Retain a copy of your assignment for your records.
Don't:
- Spend time unnecessarily paraphrasing any information provided in the course material and textbooks.
- Just simply identify and mention the issue. You need to elaborate on it, explain exactly what you mean and justify your arguments with the help of literature where appropriate.
Academic Learning Centre (ALC)
It is highly recommended to seek help and guidance from the ALC as early as possible, especially if English is not your first language. The ALC can help you with the written communication by checking your assignment for grammatical correctness and that your arguments are logical. They will also help you to ensure that you understand the questions and answer them by applying theoretical knowledge in answering the questions. You will not receive any marks if you make generic, theoretical, vague and stray claims and statements without applying them to the particular situation.
Your task is to compare and contrast the historical (for the last 2 years - 2014 and 2015) and expected future performance of AGL Energy Limited(a listed company) and Genesis EnergyLimited(a listed company) a competitor in the same industry, and present your findings in the form of an executive report which will cover quantitative performance elements in a logical cohesive format.(Word limit is 1500 words). Please use the figures provided in the most recent annual reports. You must use the ratios and formulae given in chapter 8 of the prescribed textbook. Show all the formulae and absolute figures used in calculating all the ratios as an appendix. You do not have to show any graphs to illustrate trends in the ratios. Show ALL your calculations. You will note marks are provided for correct figures. Partial marks can only be provided if you provide your workings and the marker can identify where you went wrong in the calculations.
The executive report based on quantitative analysis should include (butis notconstrainedto):
- An executive summery
- A brief introduction on each company including how they are placed within the industry.
- An initial analysis of trends in the items contained in the profit and loss statements, balance sheets and statements of cash flows; appropriate relevant ratios measuring Profitability (Return on Assets and Net Profit Margin), Liquidity (Current Ratio and Quick Ratio),Capital structure (Debt to Equity Ratioand Equity Ratio) and Market performance (Earnings per share and Dividend per share).
- A highlighting of the most important changes within these ratios and an identification of the reasons for these changes.A comparison of the quantitative analysis for the two companies on Profitability, Asset efficiency, Liquidity, Capital structurean identification of the reasons for any differences.
- Conclusions - You should include a conclusion in which you comment on the strengths and weaknesses of your overall analysis encompassing what your analysis has accomplished and what are its limitations.
- Recommendation.
Taking into account the quantitative analysis, you are required to make a recommendation which will fall into one of the following three categories:
1. Invest in the company
2. Invest in the competitor
3. Invest in neither
When you prepare the executive report based on quantitative analysis, you will be able to get some important data and information from following web sites(butis notconstrainedto):
1500 words
8 references